EARNINGS (LOSS) PER COMMON SHARE

6 Months Ended

Nov. 30, 2011

EARNINGS (LOSS) PER COMMON SHARE [Abstract]

EARNINGS (LOSS) PER COMMON SHARE

NOTE F – EARNINGS (LOSS) PER COMMON SHARE

 Basic earnings per common share is computed as earnings applicable to common stockholders divided by the weighted-average number of common shares outstanding for the period.  Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted to common stock.

Basic and diluted loss per common share was $0.00 and $0.03 for the six months ended November 30, 2011 and 2010, respectively, and earnings of $0.01 and a loss of $0.01 for the three months ended November 30, 2011 and 2010, respectively.

Diluted earnings per share were computed based on the weighted average number of shares outstanding plus all potentially dilutive common shares.  A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows:

	Six months ended November 30,				Three months ended November 30,
	2011		2010		2011		2010
Basic weighted average shares outstanding		145,387,954		110,775,966		153,310,322		111,123,353
Dilutive effect of share-based compensation and warrants		-		-		4,790,333		-
Dilutive effect of contingently issuable shares		-		-		1,978,022		-
Dilutive weighted average shares outstanding		145,387,954		110,775,966		160,078,677		111,123,353

The following table represents common stock equivalents that were excluded from the computation of diluted earnings per share for the six and three months ended November 30, 2011 and 2010, because the effect of their inclusion would be anti-dilutive.
 

	Six months ended November 30,				Three months ended November 30,
	2011		2010		2011		2010
Stock options		1,809,776		1,888,776		259,776		1,888,776
Warrants		5,785,714		4,285,714		1,500,000		4,285,714
Convertible preferred stock		-		29,156,312		-		29,156,312
Common stock grants		2,903,333		4,340,000		375,000		4,340,000
		10,498,823		39,670,802		2,134,776		39,670,802